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The USD/JPY pair fell during most of the Tuesday session as the pair dug its way back into the supportive area between 78 and 78.75. The pair looks like it's been supportive at the 78 handle by the Bank of Japan, and has recently been so as the central bank even admitted to doing it.
Is because of this that we are not selling this pair. We think that as long as we stay over the 78 handle, supportive candles should be bought. If we do manage your below 70 80, we think that the central bank will step in and intervene. With this in mind, we just won't sell at any price. If we manage to get a bounce or supportive candle in the general vicinity we are trading and now, we are more than happy to go long and hold until we get to the 80 handle as it seems to be the upside target.
If the 80 handle can get broken to the upside, you could see 80.60 before long, and if we get above that we could see the 84 handle before it's all said and done. This of course would take a certain amount wherewithal as the trade would more than likely grind higher as opposed to street higher, but there is precedence for recent action to suggest that this could very easily happen.